Baird tweaks pay rules to circumvent super increase

The NSW Treasurer has changed regulations to circumvent a recent Industrial Relations Commission ruling on the inclusion of compulsory superannuation increases in wage rises.

From July, compulsory employer superannuation contributions will rise from 9 per cent to 9.25 per cent, and will continue to rise incrementally until they reach 12 per cent in 2019.

The State Government wanted the federally-mandated employer contributions to be counted as part of a 2.5 per cent capped pay rise for public sector workers.

But earlier this week the IRC ruled it did not have to take the superannuation rises into account when determining wage increases.

Unions claimed the ruling as a victory, but Treasurer Mike Baird says he has now clarified the regulation to remove any ambiguity about superannuation as an employer-related cost.

Mr Baird says without the change, up to 8000 public sector jobs would have had to be cut.

But Opposition industrial relations spokesman Adam Searle described the move as a sneaky manoeuvre that disregards the industrial umpire's decision.

"The O'Farrell government has tried to move the goalposts and claw back some of that superannuation money," Mr Searle said.

"The industrial commission - the independent umpire - has said 'no they can't do that'.

"And now that roadblock has been put in the way, the day after Parliament has risen they slip through a new regulation on a Friday afternoon at the beginning of the school holiday in the hope that nobody will be paying attention."